TheDrop Market Analysis, 08/29/25

Markets sank as inflation worries from the Federal Reserve itself provoked by a weak consumer inflation report, ending their winning streak from this week.

Chair of the Federal Reserve Jerome Powell, Drew Angerer/Pool via REUTERS.

The S&P 500 composite fell 0.64%, the Dow 30 composite fell 0.2%, the Nasdaq composite fell 1.15%, and the Russell 2000 index fell 0.5%. Downward momentum carried on to international tickers, with the British FTSE 100 falling 0.32% and the Japanese Nikkei 225 falling 0.26%.

Cryptocurrencies sank as stocks fell. The valuation of Bitcoin fell 3.82% and XRP fell 5.49%, representing the overall bearish market shift today as a result of poor inflation data. The 10-Yr bond rate took a marginal rise as higher inflation provokes holding interest rates, appeasing bond traders with higher compounded rates and earnings.

Crude oil sank 0.91% as discussion online cease regarding the India-Russia oil trade as sentiments shift toward domestic economic policy. Gold and silver made substantial rises, once again fueling their near record highs.

Investors panicked, not heavily but still causing an impact, as a result of PCE inflation results showing a higher seasonally adjusted annual rate in July than in June, and just in line than expectations. Although this data may be "expected," it still provoked worry that the inflationary impact of tariffs is beginning to kick in, even if it took half the summer season.

Many chip stocks such as Nvidia fell as a result of Dell's softening third quarter outlook, which served as evidence for analysts that the ".com bubble" parallels are causing fears market wide as the long-term vitality of the artificial intelligence industry is put into question. Dell alone fell 8.88%, with similar tech companies like Nvidia, Lucid, Microsoft, Meta, and Apple all falling alongside it.

Roblox shares took another hit today with a 1.5% decline as investors await key content from Law By Mike, Chris Hansen, and others about the poor reporting system on the platform. This has also been attributed to the company's continuing spiral downward after the unpopular banning of the YouTuber Schlep.

Despite President Trump's crucial acquisition of 10% of Intel shares, the company has fallen 2.33%, conceding to the weight of Dell's brutal outlook.